Mumbai: The Reserve Bank on Wednesday said it has cancelled the licence of Yashwant Sahakari Bank located in Sangli district of Maharashtra.
The regulator delivered the order cancelling the bank’s licence on 23 July, a RBI release said.
The move follows the bank ceasing to be solvent and all efforts to revive it in close consultation with the government of Maharashtra failing, the Reserve Bank said.
The registrar of co-operative societies, Maharashtra, has also been requested to issue an order for winding up the bank and appoint a liquidator for it, the RBI said.
Consequent to the cancellation of its licence, the bank is prohibited from carrying on ‘banking business’ as defined in section 5 (b) of the Banking Regulation Act, 1949 (As applicable to Co-operative Societies) including acceptance and repayment of deposits, the RBI said.
It further said that on liquidation, every depositor is entitled to repayment of his/her deposits up to a monetary ceiling of Rs1 lakh from the deposit insurance and credit guarantee corporation under usual terms and conditions.